Gold sector wage talks to resume

Miners return to work at the Lonmin Platinum mine after Lonmin resolved a five-week strike by agreeing to pay raises of up to 22 percent, in Marikana, Rustenburg, South Africa, Thursday, Sept. 20, 2012. (AP Photo/Denis Farrell)

Miners return to work at the Lonmin Platinum mine after Lonmin resolved a five-week strike by agreeing to pay raises of up to 22 percent, in Marikana, Rustenburg, South Africa, Thursday, Sept. 20, 2012. (AP Photo/Denis Farrell)

Published Jun 21, 2015

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Rustenburg - The wage negotiation in the gold mining sector resumes on Monday, with three days set aside for the negotiations.

Representatives from AngloGold Ashanti, Evander Gold Mines, Harmony, Sibanye Gold and Village Main Reef met earlier this month, with representatives from the Association of Mining and Construction Workers Union (Amcu), the National Union of Mineworkers (NUM), Solidarity and Uasa, to discuss the parties’ approach to the 2015 wage negotiations and the process to be followed.

The gold producers proposed to the unions that engagement be conducted at a venue that provided for both large plenary and focused meetings that could not be provided for in the Chamber of Mines’ building, as well as an independent chairperson.

“These proposals were accepted by all four unions. On this basis, the companies advise that gold wage negotiations will commence on 22 June 2015, and are scheduled for three days,” said Chamber of Mines’ chief negotiator, Elize Strydom.

Trade union Solidarity last month said it would demand a 12 percent increase and wanted a review on the retirement age.

The Association of Mineworkers and Construction Union (Amcu) which waged a five-months long strike in the platinum mining belt last year, demanded R12 500 then and this is the same figure the union is now demanding in the gold sector.

The Amcu strike in the platinum sector ended on June 24, 2014 when the union agreed to a three-year settlement that would increased workers salary by R1 000 in the first two years and R950 in the third year.

Trade union, Uasa said it has been mandated to move away from the traditional “basket of items” approach, due to the huge inequalities and historical discrepancies in the mining industry.

“Our members at entry level would like to see these inequalities addressed, hence they are resistant against the notion of percentage pay increases. The members insist to know exactly what the effect of an increase will be on their take-home pay and that the latter should be easily understood by anyone in their respective households,” said union spokesman Andre Venter on April 23, when the union tabled its demand.

The NUM was reportedly demanding an entry-level basic pay of R10 500.

The NUM concluded a wage agreement with Goldfields in April. This agreement was concluded separately due to the uniqueness of South Deep Mine which is a highly mechanised mine with a different skill base.

In terms of the agreement, workers in the lowest paid category would receive an increased of 21 46 percent in the first year, 14,76 percent in the second year and 12,97 percent in the third year. Other categories would received eight percent in the first two years of the agreement and nine percent in the third year.

The cash basic wage per month for an entry-level worker category 4-8 (lowest category) would be R7 000 in the first year, R8 000 in the second year and R9 000 in the third year.

The cash value wage per month for an entry-level worker including other benefits would be R12 907 in the first year, R14 322 in the second year and R16 238 in the third year.

Housing allowance and housing scheme for all categories would be R3 000 per month for the first two years and R3 500 in the third year of the agreement.

ANA

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